The Annual Fertilizer Crisis in Nepal
Every monsoon season, exactly when paddy planting reaches its peak across the Terai and mid-hills, Nepali farmers face the exact same devastating problem: a severe shortage of chemical fertilizers. Despite agriculture being the backbone of Nepal’s economy, the country relies entirely on imported urea from India, China, and beyond. Supply chain disruptions, border delays, and soaring global prices often mean that farmers are forced to buy expensive, black-market fertilizer or watch their yields plummet.
But what if Nepal could produce its own fertilizer using the resources it already has in abundance? A groundbreaking 2026 research feasibility study by the Climate Technology Centre & Network (CTCN) and the UN Environment Programme is exploring exactly that. The solution is Green Hydrogen.
The Science: What is Green Hydrogen Fertilizer?
To understand this research, we need to look at how urea fertilizer is made. Globally, urea is produced by combining nitrogen from the air with hydrogen. Historically, that hydrogen has been extracted from fossil fuels like natural gas, a highly polluting and expensive process.
The new CTCN research project proposes a completely different approach tailored specifically for Nepal:
- Hydroelectric Power: Nepal generates a massive surplus of hydroelectricity from its rivers, especially during the monsoon when fertilizer demand is highest.
- Electrolysis: This excess, clean electricity is used to split water (H2O) into oxygen and hydrogen. Because the energy source is renewable hydro, this is called Green Hydrogen.
- Capturing CO2: To synthesize urea, you also need carbon dioxide. The research proposes integrating this fertilizer production directly with Nepal’s booming cement industry. By capturing the CO2 emissions from local cement factories and combining it with the green hydrogen and nitrogen, the result is high-quality, low-carbon urea fertilizer.
Economic Impact: Kam Lagat Ma Dherai Utpadan
The economic implications of this ongoing research are massive. For a farmer in Lumbini or Koshi province, this technology means access to reliable, locally produced fertilizer exactly when the monsoon hits. Because the raw materials (water and hydroelectricity) are domestically abundant, the production cost—and ultimately the price for the farmer—can be stabilized independently of global oil prices.
Furthermore, this closed-loop economy stops billions of rupees from leaking out of the country every year to pay for imported fertilizers. Instead, that capital stays within Nepal’s borders, funding local energy producers, cement factories, and agricultural initiatives.
A Cleaner Industrial Future
Beyond agriculture, this study represents a major leap in climate tech for Nepal. The cement industry is notoriously carbon-heavy. By actively capturing the CO2 from cement kilns before it hits the atmosphere and turning it into solid fertilizer, Nepal could establish one of the most environmentally friendly, circular industrial economies in South Asia.
While this project is currently in the deep feasibility and engineering phases in 2026, it represents the exact kind of practical, technology-driven solution Nepal needs. By leveraging our rivers and integrating our industries, the days of the annual fertilizer shortage may soon be behind us.
